ITC Safe-Harbor Rules Get an Extension

ITC Safe-Harbor Rules Get an Extension

The Internal Revenue Service has issued Notice 2020-41, which confirms that safe-harbor provisions for the solar Investment Tax Credit (ITC) will be extended until Oct. 15 as a result of the pandemic, giving solar companies more time to qualify for the credit.

“We appreciate the additional layer of clarity the Treasury Department has provided with respect to solar projects started in 2019,” says Erin Duncan, vice president of congressional affairs for the Solar Energy Industries Association (SEIA).

The notice provides assurance to solar developers that started construction by incurring 5% of project costs and made payments for services or property and reasonably expected to receive such services or property within 3.5 months.

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If such services or property are received by Oct. 15, the project will satisfy the beginning-of-construction requirement under ITC guidelines and, in turn, limit the impact of COVID-19-related delays on the ability to claim tax credits.

The post ITC Safe-Harbor Rules Get an Extension appeared first on Solar Industry.

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